Answer:
Step-by-step explanation:
Use formula:
- P*(1 + r/n)^(nt)
- P- invested amount, r- interest rate, n- number of compounds a year, t- number of years
Q1. r = 5% = 0.05, n = 2, t = 1
- $1000*(1 +0.05/2)^2 = $1050.63
Q2. r = 5% = 0.05, n = 4, t = 1
- $1000*(1 + 0.05/4)^4 = $1050.95
Q3. r = 5% = 0.05, n = 4, t = 2
- $1000*(1 + 0.05/4)^8 = $1104.49
Q4. r = 8% = 0.08, n = 1, t = 3
- $1000*(1 + 0.08)^3 = $1259.71
Q5. r = 8% = 0.08, n = 4, t = 3
- $1000*(1 + 0.08/4)^12 = $1268.24
Note: All results rounded to the nearest cent
